St Paul Travelers has agreed to stop paying contingent commissions in the US.
Connecticut Attorney General Richard Blumenthal has announced that the property casualty insurer will adhere to a settlement it reached with three US states to forego contingent commissions.
Contingent commissions have come under fire from US regulators for leading to potential conflicts of interest as intermediaries receive money from insurers for transacting large amounts of business with them.
Regulators in Connecticut, Illinois and New York had argued that brokers should eschew contingent commissions to avoid any perception that they were not acting in the best interests of their clients.
